A daily, rule-based adaptive asset allocator that rotates among a broad mix of leveraged, inverse, and conventional ETFs using momentum, volatility, and regime signals to chase upside while hedging to limit drawdowns.

On a daily basis, the system scans a large universe of ETFs (stocks, bonds, commodities, currencies, volatility hedges) and runs a cascade of decision rules. If signals show risk-on momentum, it selects one or more assets with the strongest momentum signals and assigns them weighted exposure. If signals flip toward risk-off or volatility spikes, it pivots into hedges and safer assets (Treasuries, cash proxies, inverse/short ETFs). The process uses momentum (moving averages, RSI/relative strength), price relationships to SPY and other benchmarks, volatility/standard deviation metrics, and cross-checks to avoid crowded bets. It also uses “defense” baskets (long-duration Treasury proxies, cash, and low-volatility picks) when risk is high. The final portfolio is rebalanced daily among the chosen assets, with weights typically cycling through fully invested or cash-tilted allocations within each selected group. The strategy emphasizes drawdown control, often by layering hedges (UVXY, VIX futures ETFs, TMV/TMF) and rotating away from high-leverage bets when risk signals exceed thresholds. This is a highly adaptive, diversified, and leverage-heavy framework designed to exploit regime shifts while attempting to cap losses.

Out-of-sample edge: ~55% annualized return vs SPY ~21%, Calmar ~1.12, indicating strong upside capture in favorable regimes. Uses hedging and diversified assets to manage risk—though drawdowns can be higher in stress.